What are the ARA requirements for a business to become a sponsor or even a discounter?

just to be clear by business I mean a registered rocketry business or hobby shop or toy shop that carries rocketry products.

Do you even have to be a registered business or can ebay related businesses offer discounts or sponsor?

I understand any business trading with a business name has to be registered and if its just a hobby they trade under their personal names so does this have any relevance?  

What if the someone trades under a business name but isnt registered but claim its a hobby but don't follow the laws regarding it does this hurt the ARA being connected to such things?

Could an ARA committee member let me know before I answer an email I received to do with advertising on this forum.

Thanks

Natalie Moore
PARC Secretary/Treasurer

Sorry if this post has confused people if was a list of questions that I needed an answer on because a business can be operated several different ways and I had a feeling the ARA may not have policies to cover all bases.

Would it be easier if the ARA put in place that the business held an ABN? To gain an ABN is free and the procedure to obtain an ABN would mean the individual or business meets the criteria under the ATO to their definition of a business, this may be a simplified process than the ARA making decisions that it may or may not be qualified to do.

You can have an ABN but not be registered for GST so you would not be forcing any business any inconvenience an ABN is usually required when dealing with suppliers so in reality a business would already have one.

An example is I have been contacted regarding advertising on the forum they are an ebay business they are not a registered business as it would be called but they do hold an ABN because they run a business under their own name so it is all above board with the ATO.

Under what the ARA are proposing because they do not have a registered business name they would not qualify to advertise/ sponsor/ discount to ARA members.

I can understand that the ARA see registered businesses as legal entities I could agree with this as well but I can also appreciate that a business can come in different forms and maybe the ARA should explore those options which in turn may give ARA members a broader range of products to access and some reasonable prices for members. It would even give "the little guys" a chance to prove they are just as capable of doing business as the bigger sponsors in the ARA.

Just food for thought before the ARA make policy that could do more harm than good for members.

I can answer the question about gst.  Yes you can hold an abn and not be registered for GST.  Many years ago, I was a subcontract cleaner and was required to have My own abn to work for the company.  I wasn't required to register for the gst component because there is a "cut off" point for use of a better term.  When I was talking to My accountant (several years ago) you needed to process more that about $50k a year before you NEEDED to be registered for GST.  This figure might not be correct, so I suggest talking to an accountant before you believe Me.  But I hope this helps.

From what I remember, business name registration is an entirely different kettle of fish and I don't know all the details.

If your business turns over less than $75K a year you do not have to register. In the beginning it was $50K. Clubs and associations can turn over $150K before having to obtain an ABN and register for GST.

There is pros and cons to registering for GST if your business turns over less than this.

The girls who work for us we have a requirement that they obtain an ABN as we are their supplier and its a condition of the contract. They all run their businesses under their own person names and are not required to register a business name.

This issue has now been resolved http://www.australianrocketryclub.com.au/forum/m-1269913929/